TRADE WAR TAKES BITE ON AP­PLE

The Sudbury Star - - FP -

The es­ca­la­tion of the U.S.-China trade war has taken its toll on Ap­ple as the iPhone maker’s prof­its are seen as par­tic­u­larly vul­ner­a­ble given its reliance on China for pro­duc­tion and sales. The shares closed Fri­day at US$197.18, down 1.4 per cent on the day. Ap­ple has shed about $67 bil­lion of mar­ket value since last Fri­day, a slide that takes it even fur­ther away from the US$1-tril­lion valuation it ap­peared close to re­claim­ing ear­lier this month. The trade war that cul­mi­nated this week has been par­tic­u­larly trou­bling for Ap­ple in­vestors. Not only are its sup­ply chain and pro­duc­tion closely linked to China, the Asian na­tion also ac­counted for nearly 20 per cent of its 2018 rev­enue, ac­cord­ing to data com­piled by Bloomberg. Mor­gan Stan­ley on Thurs­day es­ti­mated that in a worst-case trade sce­nario, Ap­ple could see its earn­ings drop by nearly a quar­ter, or US$3 per share.

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